☕️ Your hobby making you good money? LHDN might want some of it

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

4.75% pay rise – Australia’s independent wage-setting body, the Fair Work Commission, announced that the country’s 2.8 mil lower-paid workers will be getting that pay rise from Jul, raising the weekly minimum wage to AUD1,004.90 (RM2,853) - make it a month, that’s about RM11.4k or 6.7x our min wage of RM1.7k. While this is higher than the 3.5% increase in 2025 and the 3.75% increase in 2024, the pay rise is lower than the 5% to 6% increase that trade unions were looking for.

KRW509 mil (RM1.36 mil) average bonus – Samsung Electronics’ chip division employees are expected to receive average bonuses of that amount in 2026, as a result of a tentative deal between management and labour unions to avert a strike. The deal introduced a new bonus pool for employees in the semiconductor division, equivalent to 10.5% of the division’s operating profit, to be paid in stock. Combined with an additional 1.5% in cash, the deal would allow workers to share up to 12% of operating profit as bonuses.

USD21 bil (RM83.3 bil) – The Wertheimer clan, the billionaire family behind luxury brand Chanel, is on track to pocket that much from payouts over the past decade. The family’s Cayman Islands-based holding company is set to receive USD5.8 bil in dividends for 2025 alone, of which more than half will be paid this year. This comes on top of about USD15.1 bil in payouts received by the family since 2017. The dividends have helped propel septuagenarian brothers Alain and Gérard Wertheimer into the ranks of the world’s wealthiest families. They inherited the company from their grandfather, who was one of the original business partners of creator Gabrielle “Coco” Chanel. Remember - it’s cash, not some paper value, making it even more staggering.

3. IN MALAYSIA 🇲🇾

Bersatu staying in PN
Bersatu president Muhyiddin Yassin has confirmed that the party will remain within Perikatan Nasional (PN) and continue using the PN logo in the upcoming Johor and Negeri Sembilan state elections on Jul 11 and Aug 1. Speaking after a Supreme Leadership Council meeting, he said the party’s position is clear and cannot be changed unilaterally by any single party, stressing that coalition decisions must follow proper constitutional processes and be made through consensus among all component parties. He added that Bersatu remains fully committed to its role within PN and expects structured talks on seat allocations to take place in an organised manner, although no official meeting date has been set at this stage.

Muhyiddin also noted that earlier announcements by PAS on ending political cooperation with Bersatu have created uncertainty within the wider coalition, but said the party is still prepared to contest strongly if efforts to restore ties fail. He added that election preparations are already underway and that Bersatu is expected to announce its Johor candidate list soon as part of its readiness for the upcoming polls. He also emphasised that coordination between parties remains important to ensure stability and avoid overlapping claims on seats, particularly in closely contested areas.

More drama incoming, let’s see what PAS has to say.

Judge: Najib not misled in 1MDB case
In detailed written grounds released on Tuesday, High Court judge Collin Lawrence Sequerah set out strong findings in the RM2.28 bil 1MDB case involving Najib Razak, saying it was highly unlikely that he was misled by his subordinates. And also said that Najib is no country bumpkin, possessing impeccable family and political pedigree as well as superior intelligence given his academic background. Some highlights:

1. The judge noted that Najib held the highest political and corporate positions at the time, including Prime Minister, Finance Minister, and chairman of the 1MDB advisory board, and rejected the defence claim that he was unaware of wrongdoing within the fund or detached from its operations.

2. The court also highlighted the role of businessman Jho Low, saying evidence showed his close involvement in key financial transactions and that he maintained significant access to decision-making channels linked to the fund.

3. The judgment further noted that no action was taken against him even after concerns were raised by various parties, which strengthened the inference of his operational role in the wider structure of 1MDB dealings.

4. The court also referred to documented social links between Najib and Jho Low, including overseas trips and holidays with his family, as part of the broader factual background considered in the case.

5. The judge dismissed arguments that Najib was too occupied with running the country to properly oversee the sovereign fund, saying his level of authority and control made that claim unconvincing in light of the evidence presented. The court also stated that the narrative of him being unaware of the transactions could not stand when weighed against his positions and responsibilities. Read the full judgement here - 809 pages, if you are up for the challenge.

Your hobby making you good money? LHDN might want some of it
The Inland Revenue Board (LHDN) has said it is monitoring the growing trading card scene as hobby collecting increasingly turns into high-value trading, with thousands of ringgit changing hands in single transactions. It said such activity can become taxable if it shows signs of profit-making or business-style trading under the Income Tax Act. There is no minimum profit threshold, meaning even small gains can be taxed if the activity is structured like a business.

Officials said assessments are based on “badges of trade”, including transaction frequency, holding period, intention, and level of organisation. Occasional sales from personal collections are generally not taxable, but frequent trading for profit may be treated as business income. The board also warned that audits may be carried out where there are signs such as lifestyle mismatches or unexplained asset growth, including activity linked to social media influencers. Collectors and traders are advised to keep proper records and assess whether their activity has shifted from hobby to business.

Crime watch
Students drawn into bank mule scams: Home Minister Saifuddin Nasution has warned that university students are increasingly being recruited by online scam syndicates to act as bank mules, with offers ranging from RM1,000 to RM2,000 per account. These accounts are then used to channel stolen funds before the money is withdrawn or transferred to the account holders involved. He said the government has strengthened laws by amending legislation to criminalise the misuse of payment instruments, including ATM cards, credit cards and e-wallet accounts, even when handled by third parties. Awareness campaigns are also being rolled out in schools and universities, alongside the National Scam Response Centre (NSRC) 997 hotline to help victims respond quickly.

Ex-Ikram member hit with RM98m graft charges: Former committee member of Islamic NGO Pertubuhan Ikram Malaysia, Fakhrudin Abd Karim, has claimed trial to 158 graft charges involving RM98.27 mil in alleged misuse of NGO funds over a period stretching from 2021 to 2025. He is accused of diverting RM81.95 mil into a linked company account and RM16.32 mil into his personal account while serving as an authorised signatory for the organisation’s Hulu Selangor branch. The Sessions Court set bail at RM500,000 with two sureties, along with conditions including surrender of passport and restrictions on contact with prosecution witnesses.

4. AROUND THE WORLD 🌎

The Middle East
Iran to get US financial relief
Is America giving USD300 bil (RM1.2 tril) to Iran? At least that’s what many are thinking. Trump, of course, denies it. But there are no final details yet regarding this, as most news outlets are relying on draft documents circulated by the US. Right now, it is worded as ‘financing of at least USD300 bil’ for Iran to ‘rehabilitate its economic development’. According to estimates in Apr 2026, Iran has suffered losses of USD270 bil from the conflict with the US. Four Iran-linked oil tankers are already sailing out of the Strait of Hormuz. As a result, crude oil prices have dropped to USD78 per barrel, the lowest level in three months.

‘Drop the bombs’ — Trump if he doesn’t like the Iran deal
Well, it wasn’t really a surprise. Trump is back to threats again, saying that the US ‘will go right back to dropping bombs’ if he doesn’t like the Iran deal. What is being signed on Friday is a memorandum of understanding that will act as a ceasefire and a reopening of the Strait of Hormuz for 60 days. In the meantime, they will be negotiating matters such as Iran’s nuclear program and economic sanctions.

Meanwhile, Trump’s VP, JD Vance, reiterated that the US has ‘all the cards’ in the talks. The US will be in Switzerland with G7 countries such as the UK, France, Germany, Italy, Canada and Japan to discuss the conflict in the Middle East and Russia-Ukraine. Trump said that Russia should come to a deal, considering that both countries have lost many men. Then, of course, the big tech CEOs will also be in town as every country there will be discussing AI issues and global tech sovereignty.

SEA
Myanmar and China are still BFFs
With a handshake, President Xi Jinping affirms the BFF relationship with Myanmar's President, Min Aung ⁠Hlaing. Xi even said that China and Myanmar have a ‘brotherly friendship’. Though it’s obvious who’s the bigger brother out of them. Currently, Myanmar is essentially split between the Junta and pro-democracy ‘rebels’. China has supported Min Aung Hlaing from the beginning of the bloody civil war.

There is much at stake for China, as it has invested a lot under its Belt and Road Initiative in Myanmar, and most of its projects are in active combat zones. But there are conditions for Xi continuing to support Min. China is concerned about the proliferation of online gambling, internet scams/fraud and drug trafficking in Myanmar and has urged it to ‘crack down hard’.

The Philippines Senate president removed
Game of Thrones is in full force in the Philippines. Just before impeachment proceedings against Vice President Sara Duterte begin in Jul, 13 senators out of 24 voted to replace the Senate president, Alan Peter Cayetano, with Senator Sherwin Gatchalian. Cayetano is an ally of former President Rodrigo Duterte and was only elected as Senate president last month, when Senator Ronald ‘Bato’ Del Rosa returned to cast a decisive vote for him. He was the top enforcer of Rodrigo’s ‘war on drugs’ and is now wanted by the International Criminal Court for ‘crimes against humanity’, similar to what Rodrigo is being accused of.

AI
China DeepSeek raises USD7.4 bil
DeepSeek is going deep into the funding markets. It has raised USD7.4 bil (RM30.08 bil) in its latest funding round, giving it a valuation of over USD50 bil. But the structure is odd and suggests that DeepSeek CEO Liang Wenfeng intends to maintain an iron grip on the company. Investors will not be investing in DeepSeek, but rather in a limited partnership managed by Liang instead and are subject to a five-year lock-up period, with no voting rights. The only exception is China's National Artificial Intelligence Industry Investment Fund, which invested directly and holds voting rights. It was earlier reported Liang is committing RMB20 bil (RM12.03 bil) of his own money and another RMB10 bil each of OPM from Tencent and battery maker CATL.

If you are curious about this share model, it is not something new. Many US tech companies utilise the ‘dual share model’ to issue shares that have fewer voting rights to investors, while retaining most of the shares that have higher voting rights. This gives the founders or management flexibility to raise more money without giving up control of the company. It seems that Liang Wenfeng is taking this to the extreme.

AI causing dementia?
Are humans at a crossroads? Should people rely on AI to do more of their thinking, or continue doing most of it themselves? Vivienne Ming, a theoretical neuroscientist, is warning that delegating your thinking (or cognitive offloading) to AI could expose people to dementia. Chronic substitution of thinking with AI could mean that you stop building the ‘reserves’ that protect you from Alzheimer’s disease.

She is also concerned that it could reduce young people's cognitive resilience as they age. If you don’t use it, you could lose it. An analysis done by the English Longitudinal Study of Ageing found that older people with higher cognitive reserve can expect to have 35% lower risk of developing dementia.

5. FOR YOUR EYES 📺

1. If you do hiking, this is for you.

2. Food safety - myth or reality?

3. Interesting - microplastics in plastic gloves can leach into our fried food.